True False 21 23 The direct labor costs and factory overhead costs incurred by a production department are referred to as conversion costs. . True False a. The first step in determining the cost of goods completed and ending inventory valuation using process costing is to calculate equivalent units of production. True False Conversion costs are usually incurred evenly throughout a process. True False Equivalent units of production are the number of units that could have been manufactured from start to finish during an accounting period True False 22 2. Both job order and process cost accounting use equivalent units of production to determine costs. . True False The cost of production report reports the cost of the goods sold. . True False The cost of production report summarizes (1) the units for which the department is accountable and the units to be assigned costs and (2) the costs charged to the department and the allocation of those costs. True False One of the differences in accounting for a process costing system compared to a job order system is that the amounts used to transfer goods from one department to the next comes from the cost of production report instead of job cost cards. True False 22 One of the primary uses of a cost of production report is to assist management in controlling production costs. . True False * In a process costing system, costs flow into finished goods inventory only from the work in process inventory of the last manufacturing process. . True False Part II Multiple Choice 3 Points each total 24 Points